KARACHI: After initial volatility, the Pakistan Stock Exchange (PSX) on Monday extended weekend recovery momentum and managed to settle above the 185,000-point milestone as banking scrips attracted value-hunters, though cement and fertiliser sectors remained under pressure.

Topline Securities Ltd said the bourse witnessed a see-saw session, juggling between cautious holds and selective buying throughout the day. The index dipped to an intraday low of 182,792.40, losing 1,382 points in the first half before staging a strong recovery, touching an intraday high of 185,611.73, a rise of 1,437 points. However, the benchmark ultimately closed at 185,057.83, up 883.35 points, or 0.48 per cent, as sentiment improved in the latter half of the session.

The top contributors were United Bank, Engro Holdings, Systems Ltd, and Fatima Fertiliser, which collectively contributed 753 points to the index. However, this was outweighed by selling pressure in Fauji Fertiliser, Lucky Cement, Habib Bank, Indus Motor, and Adamjee Insurance, which together shaved 416 points off the benchmark.

Despite a bullish trend, market participation weakened, with trading volume dipping 8.07pc to 740 million shares and traded value declining 16.97pc to Rs42.2 billion. First National Equities Ltd topped the volume chart with 191 million shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said the PSX ended the session on a positive note, with investor sentiment improving following constructive geopolitical developments. Official statements from both the US and Iran indicated a willingness to pursue dialogue and avoid further escalation.

On the macroeconomic front, the Federal Board of Revenue’s tax collection rose over 16pc to Rs1.015 trillion in January, though it remained Rs16bn below the monthly target. Cumulatively, 7MFY26 collection stood at R7.176tr, falling short of the target by Rs345bn. Meanwhile, fuel prices for the current fortnight were revised, with high-speed diesel increased to Rs268.38 per litre, while petrol was kept unchanged at Rs253.17 per litre.

Analysts expect the index may continue its upward trajectory toward the recent peak of 191,000, contingent on the absence of any negative geopolitical developments.

Published in Dawn, February 3rd, 2026